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April 22, 2019
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China’s startup ecosystem is hitting back at demanding working hours

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In China, the laws limit work to 44 hours a week and require overtime pay for anything above that. But many aren’t following the rules, and a rare online movement puts a spotlight on extended work hours in China’s booming tech sector. People from all corners of society have rallied in support for improvements to startup working conditions, while some warn of hurdles in a culture ingrained in the belief that more work leads to greater success.

In late March, anonymous activists introduced 996.ICU, a domain name that represents the grueling life of Chinese programmers: who work from 9 am to 9 pm, 6 days a week with the threat of ending up at ICU, a hospital’s intensive care unit. The site details local labor laws that explicitly prohibit overtime work without pay. The slogan “Developers’ lives matter” appears at the bottom in solemn silence.

A project called 996.ICU soon followed on GitHub, the Microsoft-owned code and tool sharing site. Programmers flocked to air their grievances, compiling a list of Chinese companies that reportedly practice 996 working. Among them were major names like e-commerce leaders Alibaba, JD.com and Pinduoduo, as well as telecoms equipment maker Huawei and Bytedance, the parent company of the red-hot short video app TikTok.

In an email response to TechCrunch, JD claimed it doesn’t force employees to work overtime.

“JD.com is a competitive workplace that rewards initiative and hard work, which is consistent with our entrepreneurial roots. We’re getting back to those roots as we seek, develop and reward staff who share the same hunger and values,” the spokesperson said.

Alibaba declined to comment on the GitHub movement, although founder Jack Ma shared on Weibo Friday his view on the 996 regime.

“No companies should or can force employees into working 996,” wrote Ma. “But young people need to understand that happiness comes from hard work. I don’t defend 996, but I pay my respect to hard workers!”

Bytedance declined to comment on whether its employees work 996. We contacted Huawei but had not heard back from the company at the time of writing.

996.ICU rapidly rocketed to be the most-starred project on GitHub, which claims to be the world’s largest host of source codes. The protest certainly turned heads among tech bosses as China-based users soon noticed a number of browsers owned by companies practicing 996 had restricted access to the webpage.

The 996 dilemma

The 996 list is far from exhaustive as it comprises of voluntary entries from GitHub users. It’s also hard to nail down the average work hours at a firm, especially a behemoth with tens of thousands of employees where policies can differ across departments. For instance, it’s widely acknowledged that developers work longer than their peers in other units. Anecdotally, TechCrunch has heard that bosses in some organizations often find ways to exploit loopholes, such as setting unrealistic KPIs without explicitly writing 996 into employee contracts.

“While our company doesn’t force us into 996, sometimes, poor planning from upper management forces us to work long hours to meet arbitrary management deadlines,” a Beijing-based engineer at a professional networking site told TechCrunch. This person is one of many sources who spoke anonymously because they are not authorized to speak to media.

china office workers

BEIJING, CHINA APRIL 25, 2018: Passenger on a train in the Beijing Subway. Donat Sorokin/TASS (Photo by Donat SorokinTASS via Getty Images)

Other companies are more vocal about 996, taking pride in their excessively diligent culture. Youzan, the Tencent-backed, Shopify -like e-commerce solution provider, explicitly demanded staff to live out 996 work styles. Employees subsequently filed complaints in January to local labor authorities, which were said to have launched an investigation into Youzan.

A lot of companies are like Youzan, which equates long hours of work with success. That mindset can easily lure programmers or other staff into accepting extra work time. But employees are hardly the only ones burning out as entrepreneurs are under even greater pressure to grow the business they build from scratch.

“The recent debate over 996 brings to light the intense competition in China’s tech industry. To survive, startups and large companies have no choice but to work extremely hard. Some renown entrepreneurs even work over 100 hours a week,” Jake Xie, vice president of investment at China Growth Capital, an early-stage venture fund, told TechCrunch.

“Overtime is a norm at many internet companies. If we don’t work more, we fall behind,” said a founder of a Shenzhen-based mobile game developing startup. Competition is particularly cut-throat in China’s mobile gaming sector, where creativity is in short supply and a popular shortcut to success is knocking off an already viral title. Speed, therefore, is all it matters.

Meanwhile, a high-performing culture brewing in China may neutralize society’s resistance to 996. Driven individuals band together at gyms and yoga studios to sweat off stress. Getting group dinners before returning to work every night becomes essential to one’s social life, especially for those that don’t yet have children.

alibaba

Photo source: Jack Ma via Weibo

“There is a belief that more hours equals more learning. I think some percentage of people want to put in more hours, and that percentage is highest for 22 to 30 years old,” a Shanghai-based executive at a tech company that values work-life balance told TechCrunch. “A few people in my team have expressed to us that they feel they cannot grow as fast as their friends who are working at companies that practice 996.”

“If you don’t work 996 when you’re young, when will you?” Wrote 54-year-old Jack Ma in his Weibo post. “To this day, I’m definitely working at least 12 to 12, let alone 996… Not everyone practicing 996 has the chance to do things that are valuable and meaningful with a sense of achievement. So I think it’s a blessing for the BATs of China to be able to work 996.”

(BAT is short for Baidu, Alibaba and Tencent for their digital dominance in China, akin to FANNG in the west.)

Demanding hours are certainly not unique to the tech industry. Media and literature have long documented the strenuous work conditions in China’s manufacturing sector. Neighboring Japan is plagued by karoshi or “death from overwork” among its salarymen and Korean companies are also known for imposing back-breaking hours on workers, compelling the government to step in.

Attempts to change

Despite those apparent blocks, the anti-996 movement has garnered domestic attention. The trending topic “996ICU gets blocked by large companies” has generated nearly 2,000 posts and 6.3 million views on Weibo. China’s state-run broadcaster CCTV chronicled the incident and accused overtime work of causing “substantial physical and psychological consequences” in employees. Outside China, Python creator Guido van Rossum raised awareness about China’s 996 work routine in a tweet and on a forum.

“Can we do something for 996 programmers in China?” He wrote in a thread viewed 16,700 times.

The 996 campaign that began as a verbal outcry soon led to material acts. Shanghai-based lawyer Katt Gu and startup founder Suji Yan, who say they aren’t involved in the 996.ICU project, put forward an Anti-996 License that would keep companies in violation of domestic or global labor laws from using its open source software.

But some cautioned the restriction may undermine the spirit of open source, which denotes that a piece of software is distributed free and the source code undergirding it is accessible to others so they can study, share and modify the creator’s work.

“I strongly oppose and condemn 996, but at the same time I disagree with adding discretionary clauses to an open source project or using an open source project for the political game,” You Yuxi, creator of open-source project Vue, which was released under the MIT license, said on the Chinese equivalent to Twitter, Weibo. (Gu denies her project has any “political factors.”)

Others take a less aggressive approach, applauding companies that embrace the more humane schedule of “9 am to 5 pm for 5 days a week” via the “995.WLB” GitHub project. (WLB is short for “work-life balance.”) On this list are companies like Douban, the book and film review site famous for its “slow” growth but enduring popularity with China’s self-proclaimed hippies. WeWork, the workplace service provider that bills itself as showing respect for employees’ lives outside work, was also nominated.

While many nominees on the 996 list appear to be commercially successful, others point to a selection bias in the notion that more work bears greater fruit.

“If a company is large enough and are revealed to be practicing 996, the issue gets more attention. Take Youzan and JD for example,” a Shanghai-based developer at an enterprise software startup told TechCrunch.

“Conversely, a lot of companies that do practice 996 but have not been commercially successful are overlooked. There is no sufficient evidence that shows a company’s growth is linked to 996… What bosses should evaluate is productivity, not hours.”

Or, as some may suggest, managers should get better at incentivizing employees rather than blindingly asking for more hours.

“As long as [China’s] economy doesn’t stall, it may be hard to stop 996 from happening. This is not a problem of the individual. It’s an economic problem. What we can do is offering more humane care and inspiring workers to reflect, ‘Am I working at free will and with passion?’ instead of looking at their work hours,” suggested Xie of China Growth Capital.

While a push towards more disciplined work hours may be slow to come, experts have suggested another area where workers can strive for better treatment.

“It seems almost all startups in China underfund the social security or housing fund especially when they are young, that is, before series A or even series B financing,” Benjamin Qiu, partner at law firm Loeb & Loeb LLP, explained to TechCrunch.

“Compared to 996, the employees have an even stronger legal claim on the above since it violates regulations and financially hurts the employee. That said, the official social credit and housing fund requirement in China appears to be an undue burden on the employer compared to the Silicon Valley, but if complied with, it could be understood as an offset of the 996 culture.”

A number of my interviewees spoke on conditions of anonymity, not because their companies promote 996 but, curiously, because their employers don’t want to become ensnarled in the 996 discussions. “We don’t need to tell people we support work-life balance. We show it with action,” said a spokesperson for one company.

News Source = techcrunch.com

Huawei has built an Android alternative in case US tensions increase

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Tensions between the U.S. and Huawei show no sign of easing. Last week, the electronics giant announced that it has filed a lawsuit against the government over an “unconstitutional” ban on its products. Meanwhile, earlier this week, the U.S. threatened German intelligence over the country’s use of Huawei 5G products.

The company has understandably been prepping for a further downturn in relations by building its own in-house alternative to Android. The backup was noted by Huawei mobile head Richard Yu, following a year of rumors around the mobile OS.

“We have prepared our own operating system; if it turns out we can no longer use [Android], we will be ready and have our plan B,” the exec said.

Huawei began building the software in earnest after a U.S. ban on ZTE. The use of software and hardware from U.S. companies like Google and Qualcomm in Chinese smartphones has led to increasing tariffs on both sides.

In addition to concerns over ties to the Chinese government, Huawei has also been hit over its alleged skirting of Iranian tariffs. That landed the company’s CFO Meng Wanzhou in a Canadian jail. Of course, all of this hasn’t slowed Huawei’s global growth. The company saw a 50 percent jump in revenue in spite of mounting concerns.

We’ve reached out to Huawei for further confirmation.

News Source = techcrunch.com

Can predictive analytics be made safe for humans?

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Massive-scale predictive analytics is a relatively new phenomenon, one that challenges both decades of law as well as consumer thinking about privacy.

As a technology, it may well save thousands of lives in applications like predictive medicine, but if it isn’t used carefully, it may prevent thousands from getting loans, for instance, if an underwriting algorithm is biased against certain users.

I chatted with Dennis Hirsch a few weeks ago about the challenges posed by this new data economy. Hirsch is a professor of law at Ohio State and head of its Program on Data and Governance. He’s also affiliated with the university’s Risk Institute.

“Data ethics is the new form of risk mitigation for the algorithmic economy,” he said. In a post-Cambridge Analytica world, every company has to assess what data it has on its customers and mitigate the risk of harm. How to do that, though, is at the cutting edge of the new field of data governance, which investigates the processes and policies through which organizations manage their data.

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“Traditional privacy regulation asks whether you gave someone notice and given them a choice,” he explains. That principle is the bedrock for Europe’s GDPR law, and for the patchwork of laws in the U.S. that protect privacy. It’s based around the simplistic idea that a datum — such as a customer’s address — shouldn’t be shared with, say, a marketer without that user’s knowledge. Privacy is about protecting the address book, so to speak.

The rise of “predictive analytics,” though, has completely demolished such privacy legislation. Predictive analytics is a fuzzy term, but essentially means interpreting raw data and drawing new conclusions through inference. This is the story of the famous Target data crisis, where the retailer recommended pregnancy-related goods to women who had certain patterns of purchases. As Charles Duhigg explained at the time:

Many shoppers purchase soap and cotton balls, but when someone suddenly starts buying lots of scent-free soap and extra-big bags of cotton balls, in addition to hand sanitizers and washcloths, it signals they could be getting close to their delivery date.

Predictive analytics is difficult to predict. Hirsch says “I don’t think any of us are going to be intelligent enough to understand predictive analytics.” Talking about customers, he said “They give up their surface items — like cotton balls and unscented body lotion — they know they are sharing that, but they don’t know they are giving up their pregnancy status. … People are not going to know how to protect themselves because they can’t know what can be inferred from their surface data.”

In other words, the scale of those predictions completely undermines notice and consent.

Even though the law hasn’t caught up to this exponentially more challenging problem, companies themselves seem to be responding in the wake of Target and Facebook’s very public scandals. “What we are hearing is that we don’t want to put our customers at risk,” Hirsch explained. “They understand that this predictive technology gives them really awesome power and they can do a lot of good with it, but they can also hurt people with it.” The key actors here are corporate chief privacy officers, a role that has cropped up in recent years to mitigate some of these challenges.

Hirsch is spending significant time trying to build new governance strategies to allow companies to use predictive analytics in an ethical way, so that “we can achieve and enjoy its benefits without having to bear these costs from it.” He’s focused on four areas: privacy, manipulation, bias and procedural unfairness. “We are going to set out principles on what is ethical and and what is not,” he said.

Much of that focus has been on how to help regulators build policies that can manage predictive analytics. Because people can’t understand the extent that inferences can be made with their data, “I think a much better regulatory approach is to have someone who does understand, ideally some sort of regulator, who can draw some lines.” Hirsch has been researching how the FTC’s Unfairness Authority may be a path forward for getting such policies into practice.

He analogized this to the Food and Drug Administration. “We have no ability to assess the risks of a given drug [so] we give it to an expert agency and allow them to assess it,” he said. “That’s the kind of regulation that we need.”

Hirsch overall has a balanced perspective on the risks and rewards here. He wants analytics to be “more socially acceptable,” but at the same time, sees the needs for careful scrutiny and oversight to ensure that consumers are protected. Ultimately, he sees that as incredibly beneficial to companies that can take the value out of this tech without risking provoking consumer ire.

Who will steal your data more: China or America?

Jaap Arriens/NurPhoto via Getty Images

Talking about data ethics, Europe is in the middle of a superpower pincer. China’s telecom giant Huawei has made expansion on the continent a major priority, while the United States has been sending delegation after delegation to convince its Western allies to reject Chinese equipment. The dilemma was quite visible last week at MWC Barcelona, where the two sides each tried to make their case.

It’s been years since the Snowden revelations showed that the United States was operating an enormous eavesdropping infrastructure targeting countries throughout the world, including across Europe. Huawei has reiterated its stance that it does not steal information from its equipment, and has repeated its demands that the Trump administration provide public proof of flaws in its security.

There is an abundance of moral relativism here, but I see this as increasingly a litmus test of the West on China. China has not hidden its ambitions to take a prime role in East Asia, nor has it hidden its intentions to build a massive surveillance network over its own people or to influence the media overseas.

Those tactics, though, are straight out of the American playbook, which lost its moral legitimacy over the past two decades from some combination of the Iraq War, Snowden, WikiLeaks and other public scandals that have undermined trust in the country overseas.

Security and privacy might have been a competitive advantage for American products over their Chinese counterparts, but that advantage has been weakened for many countries to near zero. We are increasingly going to see countries choose a mix of Chinese and American equipment in sensitive applications, if only to ensure that if one country is going to steal their data, it might as well be balanced.

Things that seem interesting that I haven’t read yet

Obsessions

  • Perhaps some more challenges around data usage and algorithmic accountability
  • We have a bit of a theme around emerging markets, macroeconomics and the next set of users to join the internet
  • More discussion of megaprojects, infrastructure and “why can’t we build things?”

Thanks

To every member of Extra Crunch: thank you. You allow us to get off the ad-laden media churn conveyor belt and spend quality time on amazing ideas, people and companies. If I can ever be of assistance, hit reply, or send an email to danny@techcrunch.com.

This newsletter is written with the assistance of Arman Tabatabai from New York.

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News Source = techcrunch.com

5G phones are here but there’s no rush to upgrade

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This year’s Mobile World Congress — the CES for Android device makers — was awash with 5G handsets.

The world’s No.1 smartphone seller by marketshare, Samsung, got out ahead with a standalone launch event in San Francisco, showing off two 5G devices, just before fast-following Android rivals popped out their own 5G phones at launch events across Barcelona this week.

We’ve rounded up all these 5G handset launches here. Prices range from an eye-popping $2,600 for Huawei’s foldable phabet-to-tablet Mate X — and an equally eye-watering $1,980 for Samsung’s Galaxy Fold; another 5G handset that bends — to a rather more reasonable $680 for Xiaomi’s Mi Mix 3 5G, albeit the device is otherwise mid-tier. Other prices for 5G phones announced this week remain tbc.

Android OEMs are clearly hoping the hype around next-gen mobile networks can work a little marketing magic and kick-start stalled smartphone growth. Especially with reports suggesting Apple won’t launch a 5G iPhone until at least next year. So 5G is a space Android OEMs alone get to own for a while.

Chipmaker Qualcomm, which is embroiled in a bitter patent battle with Apple, was also on stage in Barcelona to support Xiaomi’s 5G phone launch — loudly claiming the next-gen tech is coming fast and will enhance “everything”.

“We like to work with companies like Xiaomi to take risks,” lavished Qualcomm’s president Cristiano Amon upon his hosts, using 5G uptake to jibe at Apple by implication. “When we look at the opportunity ahead of us for 5G we see an opportunity to create winners.”

Despite the heavy hype, Xiaomi’s on stage demo — which it claimed was the first live 5G video call outside China — seemed oddly staged and was not exactly lacking in latency.

“Real 5G — not fake 5G!” finished Donovan Sung, the Chinese OEM’s director of product management. As a 5G sales pitch it was all very underwhelming. Much more ‘so what’ than ‘must have’.

Whether 5G marketing hype alone will convince consumers it’s past time to upgrade seems highly unlikely.

Phones sell on features rather than connectivity per se, and — whatever Qualcomm claims — 5G is being soft-launched into the market by cash-constrained carriers whose boom times lie behind them, i.e. before over-the-top players had gobbled their messaging revenues and monopolized consumer eyeballs.

All of which makes 5G an incremental consumer upgrade proposition in the near to medium term.

Use-cases for the next-gen network tech, which is touted as able to support speeds up to 100x faster than LTE and deliver latency of just a few milliseconds (as well as connecting many more devices per cell site), are also still being formulated, let alone apps and services created to leverage 5G.

But selling a network upgrade to consumers by claiming the killer apps are going to be amazing but you just can’t show them any yet is as tough as trying to make theatre out of a marginally less janky video call.

“5G could potentially help [spark smartphone growth] in a couple of years as price points lower, and availability expands, but even that might not see growth rates similar to the transition to 3G and 4G,” suggests Carolina Milanesi, principal analyst at Creative Strategies, writing in a blog post discussing Samsung’s strategy with its latest device launches.

“This is not because 5G is not important, but because it is incremental when it comes to phones and it will be other devices that will deliver on experiences, we did not even think were possible. Consumers might end up, therefore, sharing their budget more than they did during the rise of smartphones.”

The ‘problem’ for 5G — if we can call it that — is that 4G/LTE networks are capably delivering all the stuff consumers love right now: Games, apps and video. Which means that for the vast majority of consumers there’s simply no reason to rush to shell out for a ‘5G-ready’ handset. Not if 5G is all the innovation it’s got going for it.

LG V50 ThinQ 5G with a dual screen accessory for gaming

Use cases such as better AR/VR are also a tough sell given how weak consumer demand has generally been on those fronts (with the odd branded exception).

The barebones reality is that commercial 5G networks are as rare as hen’s teeth right now, outside a few limited geographical locations in the U.S. and Asia. And 5G will remain a very patchy patchwork for the foreseeable future.

Indeed, it may take a very long time indeed to achieve nationwide coverage in many countries, if 5G even ends up stretching right to all those edges. (Alternative technologies do also exist which could help fill in gaps where the ROI just isn’t there for 5G.)

So again consumers buying phones with the puffed up idea of being able to tap into 5G right here, right now (Qualcomm claimed 2019 is going to be “the year of 5G!”) will find themselves limited to just a handful of urban locations around the world.

Analysts are clear that 5G rollouts, while coming, are going to be measured and targeted as carriers approach what’s touted as a multi-industry-transforming wireless technology cautiously, with an eye on their capex and while simultaneously trying to figure out how best to restructure their businesses to engage with all the partners they’ll need to forge business relations with, across industries, in order to successfully sell 5G’s transformative potential to all sorts of enterprises — and lock onto “the sweep spot where 5G makes sense”.

Enterprise rollouts therefore look likely to be prioritized over consumer 5G — as was the case for 5G launches in South Korea at the back end of last year.

“4G was a lot more driven by the consumer side and there was an understanding that you were going for national coverage that was never really a question and you were delivering on the data promise that 3G never really delivered… so there was a gap of technology that needed to be filled. With 5G it’s much less clear,” says Gartner’s Sylvain Fabre, discussing the tech’s hype and the reality with TechCrunch ahead of MWC.

“4G’s very good, you have multiple networks that are Gbps or more and that’s continuing to increase on the downlink with multiple carrier aggregation… and other densification schemes. So 5G doesn’t… have as gap as big to fill. It’s great but again it’s applicability of where it’s uniquely positioned is kind of like a very narrow niche at the moment.”

“It’s such a step change that the real power of 5G is actually in creating new business models using network slicing — allocation of particular aspects of the network to a particular use-case,” Forrester analyst Dan Bieler also tells us. “All of this requires some rethinking of what connectivity means for an enterprise customer or for the consumer.

“And telco sales people, the telco go-to-market approach is not based on selling use-cases, mostly — it’s selling technologies. So this is a significant shift for the average telco distribution channel to go through. And I would believe this will hold back a lot of the 5G ambitions for the medium term.”

To be clear, carriers are now actively kicking the tyres of 5G, after years of lead-in hype, and grappling with technical challenges around how best to upgrade their existing networks to add in and build out 5G.

Many are running pilots and testing what works and what doesn’t, such as where to place antennas to get the most reliable signal and so on. And a few have put a toe in the water with commercial launches (globally there are 23 networks with “some form of live 5G in their commercial networks” at this point, according to Fabre.)

But at the same time 5G network standards are yet to be fully finalized so the core technology is not 100% fully baked. And with it being early days “there’s still a long way to go before we have a real significant impact of 5G type of services”, as Bieler puts it. 

There’s also spectrum availability to factor in and the cost of acquiring the necessary spectrum. As well as the time required to clear and prepare it for commercial use. (On spectrum, government policy is critical to making things happen quickly (or not). So that’s yet another factor moderating how quickly 5G networks can be built out.)

And despite some wishful thinking industry noises at MWC this week — calling for governments to ‘support digitization at scale’ by handing out spectrum for free (uhhhh, yeah right) — that’s really just whistling into the wind.

Rolling out 5G networks is undoubtedly going to be very expensive, at a time when carriers’ businesses are already faced with rising costs (from increasing data consumption) and subdued revenue growth forecasts.

“The world now works on data” and telcos are “at core of this change”, as one carrier CEO — Singtel’s Chua Sock Koong — put it in an MWC keynote in which she delved into the opportunities and challenges for operators “as we go from traditional connectivity to a new age of intelligent connectivity”.

Chua argued it will be difficult for carriers to compete “on the basis of connectivity alone” — suggesting operators will have to pivot their businesses to build out standalone business offerings selling all sorts of b2b services to support the digital transformations of other industries as part of the 5G promise — and that’s clearly going to suck up a lot of their time and mind for the foreseeable future.

In Europe alone estimates for the cost of rolling out 5G range between €300BN and €500BN (~$340BN-$570BN), according to Bieler. Figures that underline why 5G is going to grow slowly, and networks be built out thoughtfully; in the b2b space this means essentially on a case-by-case basis.

Simply put carriers must make the economics stack up. Which means no “huge enormous gambles with 5G”. And omnipresent ROI pressure pushing them to try to eke out a premium.

“A lot of the network equipment vendors have turned down the hype quite a bit,” Bieler continues. “If you compare this to the hype around 3G many years ago or 4G a couple of years ago 5G definitely comes across as a soft launch. Sort of an evolutionary type of technology. I have not come across a network equipment vendors these days who will say there will be a complete change in everything by 2020.”

On the consumer pricing front, carriers have also only just started to grapple with 5G business models. One early example is TC parent Verizon’s 5G home service — which positions the next-gen wireless tech as an alternative to fixed line broadband with discounts if you opt for a wireless smartphone data plan as well as 5G broadband.

From the consumer point of view, the carrier 5G business model conundrum boils down to: What is my carrier going to charge me for 5G? And early adopters of any technology tend to get stung on that front.

Although, in mobile, price premiums rarely stick around for long as carriers inexorably find they must ditch premiums to unlock scale — via consumer-friendly ‘all you can eat’ price plans.

Still, in the short term, carriers look likely to experiment with 5G pricing and bundles — basically seeing what they can make early adopters pay. But it’s still far from clear that people will pay a premium for better connectivity alone. And that again necessitates caution. 

5G bundled with exclusive content might be one way carriers try to extract a premium from consumers. But without huge and/or compelling branded content inventory that risks being a too niche proposition too. And the more carriers split their 5G offers the more consumers might feel they don’t need to bother, and end up sticking with 4G for longer.

It’ll also clearly take time for a 5G ‘killer app’ to emerge in the consumer space. And such an app would likely need to still be able to fallback on 4G, again to ensure scale. So the 5G experience will really need to be compellingly different in order for the tech to sell itself.

On the handset side, 5G chipset hardware is also still in its first wave. At MWC this week Qualcomm announced a next-gen 5G modem, stepping up from last year’s Snapdragon 855 chipset — which it heavily touted as architected for 5G (though it doesn’t natively support 5G).

If you’re intending to buy and hold on to a 5G handset for a few years there’s thus a risk of early adopter burn at the chipset level — i.e. if you end up with a device with a suckier battery life vs later iterations of 5G hardware where more performance kinks have been ironed out.

Intel has warned its 5G modems won’t be in phones until next year — so, again, that suggests no 5G iPhones before 2020. And Apple is of course a great bellwether for mainstream consumer tech; the company only jumps in when it believes a technology is ready for prime time, rarely sooner. And if Cupertino feels 5G can wait, that’s going to be equally true for most consumers.

Zooming out, the specter of network security (and potential regulation) now looms very large indeed where 5G is concerned, thanks to East-West trade tensions injecting a strange new world of geopolitical uncertainty into an industry that’s never really had to grapple with this kind of business risk before.

Chinese kit maker Huawei’s rotating chairman, Guo Ping, used the opportunity of an MWC keynote to defend the company and its 5G solutions against U.S. claims its network tech could be repurposed by the Chinese state as a high tech conduit to spy on the West — literally telling delegates: “We don’t do bad things” and appealing to them to plainly to: “Please choose Huawei!”

Huawei rotating resident, Guo Ping, defends the security of its network kit on stage at MWC 2019

When established technology vendors are having to use a high profile industry conference to plead for trust it’s strange and uncertain times indeed.

In Europe it’s possible carriers’ 5G network kit choices could soon be regulated as a result of security concerns attached to Chinese suppliers. The European Commission suggested as much this week, saying in another MWC keynote that it’s preparing to step in try to prevent security concerns at the EU Member State level from fragmenting 5G rollouts across the bloc.

In an on stage Q&A Orange’s chairman and CEO, Stéphane Richard, couched the risk of destabilization of the 5G global supply chain as a “big concern”, adding: “It’s the first time we have such an important risk in our industry.”

Geopolitical security is thus another issue carriers are having to factor in as they make decisions about how quickly to make the leap to 5G. And holding off on upgrades, while regulators and other standards bodies try to figure out a trusted way forward, might seem the more sensible thing to do — potentially stalling 5G upgrades in the meanwhile.

Given all the uncertainties there’s certainly no reason for consumers to rush in.

Smartphone upgrade cycles have slowed globally for a reason. Mobile hardware is mature because it’s serving consumers very well. Handsets are both powerful and capable enough to last for years.

And while there’s no doubt 5G will change things radically in future, including for consumers — enabling many more devices to be connected and feeding back data, with the potential to deliver on the (much hyped but also still pretty nascent) ‘smart home’ concept — the early 5G sales pitch for consumers essentially boils down to more of the same.

“Over the next ten years 4G will phase out. The question is how fast that happens in the meantime and again I think that will happen slower than in early times because [with 5G] you don’t come into a vacuum, you don’t fill a big gap,” suggests Gartner’s Fabre. “4G’s great, it’s getting better, wi’fi’s getting better… The story of let’s build a big national network to do 5G at scale [for all] that’s just not happening.”

“I think we’ll start very, very simple,” he adds of the 5G consumer proposition. “Things like caching data or simply doing more broadband faster. So more of the same.

“It’ll be great though. But you’ll still be watching Netflix and maybe there’ll be a couple of apps that come up… Maybe some more interactive collaboration or what have you. But we know these things are being used today by enterprises and consumers and they’ll continue to be used.”

So — in sum — the 5G mantra for the sensible consumer is really ‘wait and see’.

News Source = techcrunch.com

The best of MWC 2019

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After years of promises, 5G finally arrived at MWC 2019 — kind of, sort of. Barcelona served as the launching pad for several 5G handsets, set to arrive later this year. Though your actual 5G mileage may vary.

Foldable displays, another long-promised smartphone tech, also had its moment in the sun. Several companies debuted foldables — some were actual handsets with actual price tags, while others fell firmly within the concept camp. And pretty much all of them were behind glass.

Other notable trends for the event included cameras, AR/VR and security of all sorts. Here are the highlights and lowlights from the world’s biggest mobile show. All in all, we’re here for the weirdness.

5G comes of age

It’s been an MWC talking point for years now, but at this week’s show, the first 5G handsets finally arrived.

Huawei Mate X
LG V50 ThinQ 5G
Samsung Galaxy Fold
Samsung Galaxy S10
Xiaomi Mi Mix 3
ZTE Axon 10 Pro 5G

OnePlus, which promised last year that it would be among the first to hop on the 5G train, didn’t have a handset to announce, but it did demo a prototype and announce an initiative for 5G app devs.

Unfolding the future 

Time to unfold the checkbook. The first foldables are here, carrying an average price of ~$2,000. That’s like two phones for the price of, well, two phones. Whether or not the phones will be worth it, however, is another question entirely.

Huawei Mate X
Samsung Galaxy Fold

TCL showed off a prototype at the show, promising to deliver a more affordable take on the space at some point next year. Oppo, too, is still very much in the prototype phase.

AR/VR/MR

The biggest hit of the world’s biggest phone show may not have been a phone at all. Microsoft used the event to launch the second generation of its HoloLens, a headset firmly focused on business.

Microsoft HoloLens 2
Microsoft Azure Kinect
Vive Focus Plus
Qualcomm XR chips

Security

Huawei had a lot to say about accusations of security threats around its 5G equipment. Ditto for the European Commission’s digital commissioner. Android, meanwhile, will be getting more password-less logins.

Misc

Energizer’s 18,000 mAh phone
Light is expanding from smartphone cameras to self-driving cars
HTC’s blockchain phone can now be purchased with fiat currency
Sprint to launch 5G service in 4 cities in May
Facebook expands its internet infrastructure projects
New microSD format promises insane transfer speeds, better battery life
Nubia’s ‘wearable smartphone’ might be the next step for flexible displays

News Source = techcrunch.com

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